India’s National Company Law Appellate Tribunal (NCLAT), a Regional semi-judicial body, has Requested a WalmartDevice to explain Its Own business model in India, following an objection raised by a traders body against its $16 billion (Approximately Rs. 1.15 lakh crores) acquisition of e-commerce Company Flipkart.
NCLAT, an appellate body for the Competition Commission of India (CCI), issued the order to Wal-Mart International Holdings, the record dated Sept. 6 showed.
“Before going into the merit of the appeal, we mean to know the way Wal-Mart International Holdings Inc and also Flipkart Private Ltd do their business in the relevant market in India,” NCLAT stated in a notice, requesting Wal-Mart to file its reply by Sept. 20.
The order relates to an appeal petition filed by the Confederation of All India Traders against CCI’s approval of the Walmart-Flipkart deal each month.
The dealer body said the combination would create unfair competition and drive neighborhood convenience shops out of business.
Walmart finished the purchase of 77 percent stake in Flipkart on August 18, in one of the biggest US overseas investment.